Red Rock Resorts Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Red Rock Resorts (NASDAQ: RRR) reported its Q4 and full-year 2024 financial results. For Q4 2024, net revenues increased 7.1% to $495.7 million, while net income decreased 19.5% to $87.7 million. Adjusted EBITDA showed a slight increase of 0.5% to $202.4 million.

For the full year 2024, net revenues grew 12.5% to $1.94 billion, though net income declined 13.8% to $291.3 million. The company's Las Vegas operations performed well, with revenues increasing 12.6% to $1.93 billion and Adjusted EBITDA rising 7.4% to $879.4 million.

The company declared a quarterly dividend of $0.25 per Class A common share, payable on March 31, 2025. As of December 31, 2024, the company had $164.4 million in cash and cash equivalents, with total debt of $3.4 billion.

Positive

• Net revenues increased 12.5% to $1.94 billion in 2024
• Las Vegas operations revenue grew 12.6% to $1.93 billion
• Adjusted EBITDA increased 6.7% to $795.9 million in 2024
• Quarterly dividend of $0.25 per share maintained

Negative

• Net income decreased 13.8% to $291.3 million in 2024
• Q4 net income declined 19.5% to $87.7 million
• High debt level of $3.4 billion
• Q4 Adjusted EBITDA showed minimal growth of 0.5%

Insights

Financial Analyst

Red Rock Resorts' Q4 2024 results reveal a complex operational picture that warrants careful analysis. While the 7.1% revenue growth to $495.7 million demonstrates strong top-line momentum, the 19.5% decline in net income signals significant margin compression that investors should monitor.

The revenue composition shows encouraging trends, particularly in the casino segment which grew 8.2% to $326.5 million. However, operating costs increased disproportionately - casino expenses rose 14.3% while food and beverage costs increased 14.4%, indicating inflationary pressures are outpacing revenue growth. The company's debt position of $3.4 billion against $164.4 million in cash highlights a leveraged balance sheet that's becoming more expensive to maintain in the current high-rate environment, with interest expenses rising 15.3% year-over-year.

The Las Vegas operations continue to be the primary growth driver, with 12.6% full-year revenue growth and 7.4% EBITDA growth, reflecting strong local market fundamentals. However, the widening gap between revenue and EBITDA growth rates suggests diminishing incremental margins that may require strategic cost management initiatives.

The maintained quarterly dividend of $0.25 per share (2% yield at current prices) appears sustainable given the operating cash flow, but leaves room for debt reduction. Management will need to balance growth investments, debt service, and shareholder returns carefully in 2025, particularly if margin pressures persist.

LAS VEGAS, Feb. 11, 2025 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter Results

Consolidated Operations

• Net revenues were $495.7 million for the fourth quarter of 2024, an increase of 7.1%, or $33.0 million, from $462.7 million in the same period of 2023.
  
  
• Net income was $87.7 million for the fourth quarter of 2024, a decrease of 19.5%, or $21.2 million, from $108.9 million in the same period of 2023.
  
  
• Adjusted EBITDA⁽¹⁾ was $202.4 million for the fourth quarter of 2024, an increase of 0.5%, or $1.1 million, from $201.3 million in the same period of 2023.

Las Vegas Operations

• Net revenues from Las Vegas operations were $492.6 million for the fourth quarter of 2024, an increase of 7.2%, or $33.3 million, from $459.4 million in the same period of 2023.
  
  
• Adjusted EBITDA from Las Vegas operations was $223.9 million for the fourth quarter of 2024, an increase of 1.6%, or $3.6 million, from $220.3 million in the same period of 2023.

Full Year Results

Consolidated Operations

• Net revenues were $1.94 billion in 2024, an increase of 12.5%, or $215.0 million, from $1.72 billion in 2023.
  
  
• Net income was $291.3 million in 2024, a decrease of 13.8%, or $46.5 million, from $337.8 million in 2023.
  
  
• Adjusted EBITDA⁽¹⁾ was $795.9 million in 2024, an increase of 6.7%, or $49.9 million from $746.0 million in 2023.

Las Vegas Operations

• Net revenues from Las Vegas operations were $1.93 billion in 2024, an increase of 12.6%, or $216.2 million, from $1.71 billion in 2023.
  
  
• Adjusted EBITDA from Las Vegas operations was $879.4 million in 2024, an increase of 7.4%, or $60.5 million, from $818.8 million in 2023.

Balance Sheet Highlights

The Company's cash and cash equivalents at December 31, 2024 were $164.4 million and total principal amount of debt outstanding at the end of the fourth quarter was $3.4 billion.

Quarterly Dividend

The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the first quarter of 2025. The dividend will be payable on March 31, 2025 to all stockholders of record as of the close of business on March 17, 2025. 

Prior to the payment of such dividend, Station Holdco LLC ("Station Holdco") will make a cash distribution to all unit holders of record, including the Company, of $0.25 per unit for a total distribution of approximately $27.5 million, approximately $16.0 million of which is expected to be distributed to the Company and approximately $11.5 million of which is expected to be distributed to the other unit holders of record of Station Holdco. 

Conference Call Information 

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call will consist of prepared remarks from the Company and include a question and answer session. Those interested in participating in the call should dial (888) 317-6003, or (412) 317-6061 for international callers, approximately 15 minutes before the call start time. Please use the passcode: 5313857. A replay of the call will be available from today through February 18, 2025 at www.redrockresorts.com. A live audio webcast of the call will also be available at www.redrockresorts.com.

Presentation of Financial Information

(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations. Adjusted EBITDA for the years ended December 31, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax.

Company Information and Forward Looking Statements

Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos LLC ("Station Casinos"). Station Casinos is the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Station Casinos' properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include hotels as well as various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Durango Resort & Casino, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem, Wildfire Lake Mead, Wildfire on Fremont and Seventy Six by Station Casinos (Centennial & Aliante). Station Casinos also owns a 50% interest in Barley's Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding our expectations, hopes or intentions regarding the future. These forward-looking statements can often be identified by their use of words such as "will", "might", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "could", "would", "target", "project", "intend", "plan", "seek", "estimate", "pursue", "should", "may" and "assume", or the negative thereof, as well as variations of such words and similar expressions referring to the future. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Certain important factors, including but not limited to, financial market risks, could cause our actual results to differ materially from those expressed in our forward-looking statements. Further information on potential factors which could affect our financial condition, results of operations and business includes, without limitation, the impact of rising inflation, higher interest rates and increased energy costs on consumer demand and the Company's business, financial results and liquidity; the impact of unemployment and changes in general economic conditions on discretionary spending and consumer demand; the impact of our substantial indebtedness; the effects of local and national economic, credit and capital market conditions on consumer spending and the economy in general, and on the gaming and hotel industries in particular; the effects of competition, including locations of competitors and operating and market competition; changes in laws, including increased tax rates, regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; risks associated with construction projects, including disruption of our operations, shortages of materials or labor, unexpected costs, unforeseen permitting or regulatory issues and weather; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; acts of war or terrorist incidents, pandemics, natural disasters or civil unrest; risks associated with the collection and retention of data about our customers, employees, suppliers and business partners; and other risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in the Company's other current and periodic reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements in this document are made based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

View source version on http://redrockresorts.investorroom.com/:

INVESTORS:
Stephen L. Cootey
Stephen.Cootey@redrockresorts.com
(702) 495-4214

MEDIA:
Michael J. Britt
Michael.Britt@redrockresorts.com
(702) 495-3693

 

Red Rock Resorts, Inc. Consolidated Statements of Income (amounts in thousands, except per share data) (unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Operating revenues:
Casino	$         326,541		$        301,660		$      1,277,249		$      1,132,154
Food and beverage	92,065		85,071		360,388		313,619
Room	52,322		52,236		200,517		183,103
Other	24,767		23,747		100,857		95,210
Net revenues	495,695		462,714		1,939,011		1,724,086
Operating costs and expenses:
Casino	93,634		81,946		354,597		293,993
Food and beverage	75,590		66,050		295,193		244,786
Room	16,320		14,636		63,768		55,064
Other	7,629		8,084		30,669		32,549
Selling, general and administrative	107,112		96,659		432,276		374,494
Depreciation and amortization	48,164		36,168		187,112		132,536
Write-downs and other, net	4,956		(12,792)		6,705		31,976
	353,405		290,751		1,370,320		1,165,398
Operating income	142,290		171,963		568,691		558,688
Earnings from joint ventures	454		802		2,447		3,095
Operating income and earnings from joint ventures	142,744		172,765		571,138		561,783
Other expense:
Interest expense, net	(56,171)		(48,725)		(228,804)		(181,023)
Loss on extinguishment/modification of debt	—		—		(14,402)		—
Change in fair value of derivative instruments	11,945		—		274		—
Income before income tax	98,518		124,040		328,206		380,760
Provision for income tax	(10,796)		(15,124)		(36,914)		(42,984)
Net income	87,722		108,916		291,292		337,776
Less: net income attributable to noncontrolling interests	41,134		52,617		137,241		161,772
Net income attributable to Red Rock Resorts, Inc.	$           46,588		$          56,299		$         154,051		$         176,004
Earnings per common share:
Earnings per share of Class A common stock, basic	$              0.79		$              0.97		$              2.61		$              3.04
Earnings per share of Class A common stock, diluted	$              0.76		$              0.95		$              2.53		$              2.94
Weighted-average common shares outstanding:
Basic	59,136		58,053		59,025		57,875
Diluted	103,536		103,139		103,666		103,217
Dividends declared per common share	$0.25		$0.25		$2.00		$1.00

 

Red Rock Resorts, Inc. Segment Information and Reconciliation of Net Income to Adjusted EBITDA (amounts in thousands) (unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Net revenues
Las Vegas operations	$         492,638		$         459,365		$      1,926,128		$      1,709,951
Corporate and other	3,057		3,349		12,883		14,135
Net revenues	$         495,695		$         462,714		$      1,939,011		$      1,724,086
Net income	$           87,722		$         108,916		$         291,292		$         337,776
Adjustments
Depreciation and amortization	48,164		36,168		187,112		132,536
Share-based compensation	6,534		5,158		30,945		19,673
Write-downs and other, net	4,956		(12,792)		6,705		31,976
Interest expense, net	56,171		48,725		228,804		181,023
Loss on extinguishment/modification of debt	—		—		14,402		—
Change in fair value of derivative instruments	(11,945)		—		(274)		—
Provision for income tax	10,796		15,124		36,914		42,984
Adjusted EBITDA	$         202,398		$         201,299		$         795,900		$         745,968
Adjusted EBITDA
Las Vegas operations	$         223,897		$         220,268		$         879,360		$         818,820
Corporate and other	(21,499)		(18,969)		(83,460)		(72,852)
Adjusted EBITDA	$         202,398		$         201,299		$         795,900		$         745,968

 

View original content:https://www.prnewswire.com/news-releases/red-rock-resorts-announces-fourth-quarter-and-full-year-2024-results-302373847.html

SOURCE Red Rock Resorts, Inc.

FAQ

What were Red Rock Resorts (RRR) Q4 2024 revenue and earnings?

Red Rock Resorts reported Q4 2024 net revenues of $495.7 million, up 7.1% year-over-year, and net income of $87.7 million, down 19.5% from the same period in 2023.

How much did Red Rock Resorts (RRR) revenue grow in full-year 2024?

Red Rock Resorts' full-year 2024 net revenues grew 12.5% to $1.94 billion, compared to $1.72 billion in 2023.

What is Red Rock Resorts' (RRR) dividend payment for Q1 2025?

Red Rock Resorts declared a quarterly dividend of $0.25 per Class A common share, payable on March 31, 2025, to stockholders of record as of March 17, 2025.

What was Red Rock Resorts' (RRR) debt level at the end of 2024?

Red Rock Resorts had a total principal amount of debt of $3.4 billion and cash and cash equivalents of $164.4 million as of December 31, 2024.

How did Red Rock Resorts' (RRR) Las Vegas operations perform in 2024?

Red Rock Resorts' Las Vegas operations performed strongly in 2024, with revenues increasing 12.6% to $1.93 billion and Adjusted EBITDA rising 7.4% to $879.4 million.